The proportionate change in quantity demanded by a good due to proportionate change in the price of the other good:
A)price elasticity
B)income elasticity
C)cross elasticity
D)demand elasticity

Question

Quizplus · Accepted Answer

Cross elasticity of demand measures the responsiveness of the quantity demanded for a good to a change in the price of another good. It is used to identify the relationship between two products, categorizing them as substitutes or complements based on the sign of the cross elasticity value.

The Proportionate Change in Quantity Demanded by a Good Due